CNBC’s Jim Cramer offered investors a list of clothing stocks on Friday that he believes will see upside as workers continue to return to the office.
“After a huge run in apparel stocks, I recommend registering on the low quality ones so you can swap in something better,” he said.
Shares of PVH, the parent of Calvin Klein and Tommy Hilfiger, jumped Thursday after the company reported better-than-expected results for its latest quarter and strong quarterly guidance.
Other apparel companies, including Abercrombie & Fitch and American Eagle, also delivered upside surprises this week, sending their stocks higher.
Here are Cramer’s favorite apparel stock picks:
PVH
Kramer said he likes PVH Because it is stable in a difficult economic environment, and expects the company’s performance to strengthen when macroeconomic headwinds including a stronger US dollar, the Federal Reserve’s aggressive interest rate hikes and China’s COVID restrictions eventually end.
“Given that the stock is currently selling for less than nine times earnings, you’ve got my blessing if you think something might be right,” he said.
Ralph Lauren
Cramer praised Ralph LaurenIts pricing power and its control over expenses. He said he expects tailwinds from the reopening of the economy and his return to office.
“People need nice clothes if they’re not going to be stuck at home all the time,” he said.
lululemon athletica
Lululemon Cramer’s, who praised its management and loyal customer base.
He said he expects investors to be “absolutely excited” when Lululemon reports its quarterly results next week.